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SamKnows figures have prompted a rethink at Ofcom on how broadband services are promoted by UK ISPs.

30 Jul 2010 | 10.33 Europe/London
Data from SamKnows’ performance network rates the actual speed and service level received by subscribers across the UK, allowing the industry regulator, Ofcom, to judge the health of the UK broadband market. SamKnows also performs the same service in the USA for the FCC.

The latest figures show that the average connection has increased in speed by 25% over the past year from 4.1Mbit/s to 5.2Mbit/s. This is indicative of improved services offered by ISPs. Today around a quarter of the market is on packages with advertised speeds of more than ‘up to’ 10Mbit/s connections compared to just 8% a year ago.

However, this is increasingly leading to a difference between the headline ‘up to’ speeds and the actual speed received. SamKnows figures show that the average up to 20Mbit/s DSL service actually only delivers around 6Mbit/s.

This has prompted Ofcom to ask the Advertising Standards Authority and the Committee on Advertising Practice to consider tougher rules on how packages are advertised. Ofcom has made two suggestions. Firstly that ‘up to’ speeds should only be advertised if some customers can actually receive these speeds (the research found that no consumers on ‘up to’ 20 or 24Mbit/s DSL packages ever received download speeds of 20Mbit/s); and secondly that those who advertise according to ‘up to’ speeds, should also include a ‘typical speed range’ (or TSR) based on a standard currency to be developed, similar to those in other industries (for example, APR in financial services, and MPG in motoring).

Ofcom has also strengthened the Voluntary Code of Practice on Broadband Speeds which it introduced in 2008. Currently ISPs who have signed up to the Code are required to give consumers at point of sale an estimate of the maximum line speed likely to be achievable on their line. Under the new Code (which ISPs have committed to implement in the next 12 months), ISPs will use a consistent methodology to provide a range of what the maximum line speed is likely to be. ISPs have also committed to help consumers improve their speeds and give consumers the option to leave their contracts early without penalty (within three months of signing up to the service) if they receive a maximum line speed that is significantly below the estimate they are given at point of sale and the ISP is unable to resolve the problem.